Rebates and Feed-In Tariff

If your solar PV power system generates excess electricity during day time, the owners are usually entitled to a credit for selling electricity back to the grid regardless of the location of their solar PV system.

With no nationalized scheme, the following table demonstrates state run incentives for using solar PV system:

State Tariff Paid*
ACT 6 to 12c/kWh (depending on retailer)
NSW 11.9 to 15.0 c/kWh (depending on retailer)
NT Same as grid purchase rate
QLD 6c to 12c/kWh (depending on retailer)
SA 11 to 16.3c/kWh (depending on retailer)
TAS 8.9c/kWh
VIC 9.9 to 29c/kWh (depending on retailer)
WA Varies from retailer to retailer
*Rates are subject to change from time to time.

Renewable Energy Target

Renewable Energy Target

Incentives & rebates for solar power system

Under the Renewable Energy Target (RET) policy, the Australian federal provides incentives for solar power systems both small and large scale projects. The RET policy incentivises small and large scale solar projects differently, and is categorised into two schemes knows as Small-Scale Renewable Energy Scheme (SRES) and Large-Scale Renewable Energy Target (LRET). As part of its Renewable Energy Target (RET) policy, the government generates Renewable Energy Certificates (RECs). In order to counter fossil fuel power generation, RECs act as a financial tool making it more cost friendly as compared to the former. It helps electricity generators and retailers to meet their target requirements under RET policy by boosting the amount of renewable energy produced.
Renewable Energy Certificates (RECs) are divided into two categories: Small Scale Technology Certificates (STCs), which apply to domestic and commercial solar PV power systems under 100 kW and Large Scale Generation Certificates (LGCs), industries or solar farms having solar PV power system above 100 kW are applicable for LGCs.

Small Scale Technology Certificates (STCs)

Small scale renewable energy scheme by the Australian government allows eligible small scale solar PV power system such as households, small businesses and community groups to be entitled to a number of small scale technology certificates.

Based on the installation date, geographical location and the amount of electricity generated by your rooftop solar in megawatt hours (MWh), a number of certificates can be generated. Generally, one certificate is equal to one megawatt hour of electricity generated by your solar PV power system.

Once these certificates are created and validated, they act as a form of currency and can be sold to retrieve a portion of the cost of purchasing and installing the solar PV system.

Large Scale Generation Certificates (LGCs)

LGCs can provide an excellent secondary income streams for owners of solar PV power systems of over 100kW but it does not act as upfront cash benefit like STCs. However, LGCs have enjoyed a stable growth over time as compared to STCs whose prices are often fluctuating.

Benefiting from LGCs requires your business to register with Government`s Clean Energy Regulator and installing a hardware which monitors, collects and store necessary electricity generation data.

Once these certificates are created and validated, they act as a form of currency and can be sold to retrieve a portion of the cost of purchasing and installing the solar PV power system. These certificates are sold through open LGCs market, here the prices vary because of several market factors.

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